Venoco Scales Back 2009 Capital Budget Forecastadmin
Venoco, Inc. announced it will scale back its forecast of 2009 capital expenditures from $300 million to $225 million.
“We remain very cognizant of the unusual financial times and are committed to managing our capital expenditures to sustain the company,” explained Tim Marquez, Chairman and CEO. “Our portfolio of capital projects is robust and provides us with significant flexibility to defer spending in response to changing market conditions.”
The company’s current debt includes $150 million of Senior Notes due in December 2011, a $500 million Term Loan due in September of 2011 (with the ability to extend the maturity to May 2014 in certain circumstances) and a Revolving Credit agreement due, unless refinanced, in March 2011. The current borrowing base under the revolving credit agreement of $200 million was redetermined in November and contemplates the sale of the Hastings Complex to Denbury Resources in February 2009. The company expects proceeds from the sale of the Hastings Complex to be used principally for debt reduction.
“We estimate production for 2009 will be 19,000 barrels of oil equivalent per day based on the $225 million capital budget. This reflects flat production compared with 2008, pro forma for the sale to the Hastings field,” Mr. Marquez noted. “Given the uncertain market environment, we will continue to evaluate and adjust our capital budget and production goals throughout 2009.”
Venoco is an independent energy company primarily engaged in the acquisition, exploitation and development of oil and natural gas properties in California and Texas. Venoco operates three offshore platforms in the Santa Barbara Channel, has non-operated interests in three other platforms, operates four onshore properties in Southern California, has extensive operations in Northern California’s Sacramento Basin and operates eighteen fields in Texas.